Report from BusinessDesk
Israeli private equity group Fortissimo Capital paid US$8 million for award-winning Wellington-based microwave radio products developer 4RF, allowing the receivers to repay creditors and settle with noteholders.

The former parent company, 4RF Communications, was put in receivership in April after failing to reach agreement on restructuring some $5.5 million of convertible notes. To ensure the business, which had $20.4 million of sales in 2010, could continue trading, the operating assets were placed in a subsidiary company which was put up for sale.

The noteholders were paid at about 73 cents in the dollar of the total principle and interest owed of $6 million, said receiver John Fisk of PwC. First ranking creditor ANZ National, owed $4.1 million, was also repaid, and Sydney-based Carnegie, Wylie & Co, owed about $2.1 million, was largely repaid.

Including funds on hand and net sale proceeds, 4RF Communications had receipts for $8.7 million, according to the receivers’ report for the period ended Oct. 2.

Based in Rosh Ha’ayin, Israel, Fortissimo’s investments include Nasdaq-listed Soda Stream International and Afimilk, which makes computerised systems for dairy farms and herd management, according to its website.

It has nearly $US500 million under management, a recent statement says. Its founder and managing partner is Yuval Cohen, a Harvard-educated venture capitalist.

4RF’s products include its Aprisa SCADA point-to-multipoint radio for use by oil, gas and utility companies and a point-to-point microwave link product, according to its website.

ANZ National was owed $4.1 million by 4RF Communications, a report from receivers PwC says.